CHEBOYGAN, Mich. (AP) - A spokesman for McLaren Health Care Corp. says the health care system has to go before a bankruptcy court judge before it can reopen the emergency room and most outpatient services at Cheboygan Memorial Hospital in northern Michigan.

Kevin Tompkins said Tuesday that Flint-based McLaren has reached an agreement with the U.S. Center for Medicare and Medicaid Services - a first step in reopening portions of Cheboygan Memorial.

McLaren could go before the bankruptcy court next week. If approved, the reopening process and hiring of staff will start immediately.

The hospital closed unexpectedly April 3 after a sale to McLaren fell through. The Michigan Nurses Association said Monday night that McLaren has formed a partnership with Northern Michigan Hospital in Petoskey to obtain tentative federal approval.

“With this closure, we will have to close our emergency room,”said Shari Schult, Chief Executive Officer of CMH. “We will need to coordinate with area EMS services and local law enforcement to divert all ambulances to the most appropriate hospital. This closure also means all of our other services are closed, including outpatient clinics, x-ray, lab, cardiac rehab and physical therapy. “It also means all of our employees are without a job,” she added.

In an announcement, CMH officials said today's closing came after a proposed sale to McLaren Health Care fell through.

The long-awaited proposed sale of CMH to McLaren Health Care was set to be finalized today. But now, federal regulations are causing it to come to a halt. CMH officials say the problem is with recertification and licensure under Medicare. And now, the organization is running out of money. CMH is only authorized and budgeted to operate as an organization through April 3rd, today, which is the day the proposed sale agreement was to be finalized.